|Market Close||Market Close|
|Gas prices moved down yesterday despite higher demand levels as another drop in Brent resulted in losses across the curve. Demand levels rose from 288mcm to 306mcm but LNG send-outs remained strong and Norwegian flows improved following the end of maintenance at St Fergus. However, a weaker Pound offered some support further along the curve.||Power prices decreased in the afternoon and followed the movement of the gas market which dropped due to falling Brent, with the stronger losses recorded on the far-curve. Downward movement on the near-curve was restricted by colder temperatures but the sentiment was still bearish.|
|Market Open||Market Open|
|Another fall in oil prices has resulted in further downward movement on the gas curve this morning, with additional bearish pressure provided by a long UK gas system. Norwegian flows are above the levels seen before last week's outage and UKCS production has also improved. Meanwhile, weaker wind generation could lead to a rise in gas-fired generation and temperatures remain below the seasonal norm which could tighten the system, potentially resulting in a rebound in prices.||Despite a weaker supply/ demand forecast contracts have recorded further losses this morning, with the exception of the Day-Ahead contract which has increased due to high demand and lower wind generation. Elsewhere, Scheduled maintenance at the 775MW Eggborough coal facility has been postponed to help balance the system when numerous power plants go offline next month.|
Brent 1st-nearby prices continue to fall despite discussions between OPEC members in regards to production cuts, although there have been no developments as of yet. Instead the market continues to be pressured down by oversupply fears and Brent currently trades at $31.29.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 29.95ppt and £34.40/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click graph to enlarge